MARKETS & TRENDS

As we all know the history of insurance, the purpose of insurance was to
protect ship-owners in time of difficulty. But we do not have data to
validate how much ship-owners population was covered. I received many
emails after the first thoughts on welfare insurance were out. While
interacting with some intellectuals, a point came up that the
penetration of insurance is low, because of the cost.

Although Welfare Insurance is a new term, it is requirement that needs
to be addressed on a priority bases. Financial inclusion, mass health
and mass accident policies, mass/ group life insurance policies,
agriculture & cattle insurance, etc. are common in insurance
industry.

The global insurance industry was a very active participant in the M&A wave of 2015, accounting for nearly USD 150 billion. While buyers, sellers, and their investment bankers appear to have taken a brief break from the frenzy, the Standard and Poors rating agency believes the deal-flow will continue, albeit at a slower pace, in 2016.

The impact of business interruption (incl. supply chain disruption), market developments (volatility, intensified competition and market stagnation) and cyber incidents are the major risks occupying the attention of companies at the start of 2016, according to the fifth annual Allianz Risk Barometer, which surveys over 800 risk managers and corporate insurance experts from more than 40 countries.

Kazakhstan's accession to the World Trade Organization (WTO) - is
definitely a landmark event that will allow using the trade potential of
the country with maximum benefits in the era of globalization. However,
it is also important to protect the local market, including insurance
one. According to Kazakh Association of Insurers (ASK), the
competitiveness of domestic insurance market must be assessed not only
in terms of business scale, the size of capital and assets, but also
from the standpoint of equal or equivalent regulatory requirements.

"The cyber insurance market is currently estimated to be worth around USD 2 billion in premium worldwide, with US business accounting for approximately 90%. Fewer than 10% of companies are thought to purchase cyber insurance today. However, the cyber insurance market is expected to grow by double-digit figures year-on-year and could reach USD 20 billion+ in the next 10 years," states the recent study released by ALLIANZ, "A Guide to Cyber Risk: Managing The Impact of Increasing Interconnectivity".

The motor third-part liability insurance represents the most important insurance line of business, both in the developed and the developing countries. The legal framework, premium and reserving based on actuarial projections, guarantee funds, information systems, and reinsurance techniques all are crucial for the development of a healthy MTPL insurance system.

Due to the sanctions imposed by the USA and the EU for Russian Federation, some of local insurance companies were affected. This happened especially for placing the property or Cargo risks belonging to companies, whose owners are already in the "black list".